Q: Good day! Many thanks to 5i providing a rudder (and sometimes an anchor) on this rollicking journey.

I have been slowly accumulating CNR for the past couple of years and am now considering whether CP is better positioned over the next decade. I am currently down 8%.

Can I get 5i’s opinion on CN vs CP given each company’s
-past performance,
-quality of management,
-valuations,
-EPS growth projections
-CAN-US trade gyrations
-any other material factors

Thank you!

Q: I've held Canadian National Railway (CNR) for over eight years, achieving a modest return of about 8% per annum, which has lagged the broader Canadian market. As a retired investor seeking both income and growth, I’m considering swapping my entire CNR position for TFI International (TFII). CNR has provided stability and a reliable dividend—currently around 2.3%—but its growth has been underwhelming, and it trades at a relatively high valuation, around 19-20 times forward earnings. In contrast, TFII appears undervalued, trading at roughly 15-16 times forward earnings, with a stronger historical growth trajectory, driven by its trucking and logistics operations and savvy acquisitions. However, its dividend yield is lower, at about 1%, and it’s more cyclical than CNR’s rail business. Given my goals and the small capital gain I’d realize in my taxable account from selling CNR, does it make sense to trade all of my CNR for TFII? How do their risk profiles, income potential, and long-term growth prospects compare for someone in my position?

Q: Hi Peter,

I would like to get your thoughts on CNR and ENGH. I am long CNR and would like to reduce it and add to my position in ENGH. My views are that I get more growth from ENGH and 4.5% dividend vs. CNR call it a 2.5% dividend. I know they are different businesses but comparing the two companies what provides more growth and income opportunity.

Thanks